Again, NNPC increases petrol price

The Nigerian National Petroleum Company Limited (NNPCL) has again hiked the price of premium motor spirit (PMS) otherwise known as petrol to N1,025 per litre in Lagos. This is coming three weeks after the NNPCL retail outlets increased the price in Lagos from N855 to N998 with the prices also increasing in Abuja, Kano and […]

The Nigerian National Petroleum Company Limited (NNPCL) has again hiked the price of premium motor spirit (PMS) otherwise known as petrol to N1,025 per litre in Lagos.

This is coming three weeks after the NNPCL retail outlets increased the price in Lagos from N855 to N998 with the prices also increasing in Abuja, Kano and other parts of the country.

Though there was no official comment from the NNPCL, its outlets across the country have adjusted prices in Lagos.

Check by our correspondent at some of the filling stations indicated that the price has been adjusted.

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At an NNPCL outlet along Acme Road Ikeja, one of our correspondents observed that the station, which was selling in the morning, abruptly stopped while it covered the pump price.

But another outlet along the Lagos-Abeokuta expressway has adjusted its price to N1,025 from the previous N998.

Daily Trust reports that with the full implementation of deregulation, fuel prices would now be determined by market forces.

Just as the national oil company was adjusting its prices, other major marketers equally adjusted prices in Lagos. Mobil stations are selling at N1,070; Bovas stations, N1,090 while several others are selling above the N1,025 the NNPCL is selling at the moment.

One of the major marketers who spoke with our correspondent said the NNPCL must have adjusted the price having realised “They are below market and needed to adjust.”

According to him, with the full deregulation, “Everyone will be watching each other now. Remember others had moved earlier.” 

Meanwhile, President of the Dangote Group, Aliko Dangote, has estimated the daily local consumption of PMS to about 30m litres, saying his refinery can meet domestic production and asked the NNPCL and marketers across the country to stop importation of fuel.

Aliko Dangote disclosed this to State House Correspondents, on Tuesday, after a meeting of the Crude Oil and Refine Products Sales in Local Currency implementation committee with President Bola Ahmed Tinubu at the Presidential Villa, Abuja.

Those who attended the meeting include the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mr Mele Kyari; the Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji; and the governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso.

Others were the Authority’s Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mallam Farouk Ahmed; the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe.

Dangote at the meeting said, “What I estimated as our consumption daily is about 30-32 million litres, that one we can even start producing by next week. That is not really an issue because as we speak today, we have 500 million litres in our tanks. With that even if there is no production anywhere or no import that will take the country more than 12 days.”

However, Dangote’s estimation was in contrast to that of the NMDPRA boss who declared in Lagos on Monday that the daily consumption is about 45m to 50m.

Farouk Ahmed, who spoke on the sideline of the ongoing 18th Africa Downstream Energy Week with the theme ‘Alliances For Growth’ stated that the national consumption level is between 45 million litres a day and 50 million litres.

He said, “The current volume consumed by Nigeria, which is trucked to the market ranges between 45 million litres and 50 million litres, including the buffer that exists.

“However, we see a lot of activities going on now, because during the fourth quarter of the year, especially towards Christmas, usually, the industries experience a high volume of activities.”

Speaking further, Dangote, flanked by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun and the Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed that at full capacity, his refinery can supply whatever is being consumed across the country.

“We are very ready, we are more than ready and I am also putting my name on the line that we will be able to supply the market 30 million per day and we are ramping up, so we are ready.

“So I am expecting that the NNPCL and the marketers should stop importing, they should come and collect what they need. I don’t know if you understand what it means to keep half a billion litres in our tanks, it is costing me money. Everyday, if I am to collect money, I can charge 32 per cent in interest. That is what I am losing, if they come and collect, then you will not see any queue in the filling stations.”

However, asked why there was still fuel queues at filling stations in some parts of the country, Dangote said, “What you have to understand is that we are producers, I have a refinery, and I am not in the business of retail, if I am in the business of retail you can hold me responsible, but what I am saying is that the retailers should please come forward and pick.”

On his part, the Minister of Finance said, the meeting was to review the implementation of the sale of crude in naira, adding that the implementation committee and the sub-committee have worked assiduously with all stakeholders, the regulators, NNDPRA, NUPRC, NIMASA, NNPC, NPA the Navy and a host of other stakeholders to ensure that this important initiative is implemented.